navajo mine coal production to be 8.5 million tons annually by 1 970 utah's share of marcona's earnings amounts to 6,352,000 equal to a 53 gain over previous year marcona's backlog of iron ore sales now amounts to 735 million marcona plant expansion completed devaluation of peruvian sol and a large dragline type excavator is stripping overburden to uncover a 20 foot thick seam of coking coal the coal is processed through a preparation plant located at the mine prior to being transported 200 miles by rail to the port of gladstone where it will be loaded on coal carriers for the 4,000 mile voyage to japan utah's investment in the blackwater project at fiscal year end amounted to $ 1 2 million the total investment for the blackwater phase is estimated to be approximately 31 million in addition we are continuing our discussions with steel producers regarding further expansion of our queensland coking coal operation at your company's navajo mine in the four corners area of new mexico coal deliveries to arizona public service company's plant were approximately 2.5 million tons during the past year in 1966 unit number two of the three units of arizona public service company's 575,000 kw plant was down for repairs for six months and profits were reduced as a result profits improved substantially at this operation in 1967 however as all generating units at the power plant operated at a normal rate for the entire year work is proceeding on the erection of two new 755,000 kw mine-mouth generating plants for the six utility members of west associates these are being built adjacent to the arizona public service company generating units when these new generating units have come on stream in 1 969 and 1 970 utah's coal production from the navajo mine will be at an annual rate of 8.5 million tons which will constitute the largest output of any coal mine in the united states iron ore mining continued this year at cedar city utah where we mine iron ore for sale to united states steel corporation's geneva works under ; a long-term contract utah also performs mining operations under contract for the cf & i steel corporation in the cedar city area earnings were at about the same level as the previous year the company's 46 owned affiliate marcona corporation also had record earnings this year utah's share of the consolidated earnings after provision for distribution taxes amounted to 6,352,000 an increase of 53 over the comparable 4,143,000 which was utah's share in 1966 shipments from marcona mining company a wholly owned subsidiary of marcona corporation totaled 7,978,000 tons during utah's fiscal year an increase of 22 over the comparable period of the previous year on october 31 1967 marcona had a 63,000,000 ton backlog of iron ore sales representing revenues of about 735,000,000 a major portion of which reflects sales to japanese steel interests approximately 70 of marcona's annual sales are under contracts for delivery over three to seven years as already noted these backlog figures are not included in the mineral sales backlog of utah construction & mining co during utah's 1967 fiscal year marcona mining company completed the installation of its mine-to-port conveyor system resulting in significant reductions in operating costs capacity of the fines concentration plant and power plant was also expanded this work was accomplished by utah under contract with marcona on september 1 1967 the peruvian government withdrew its fixed support of the peruvian sol exchange rate and substantial devaluation has occurred over the ensuing months with resulting fiscal uncertainties the company cannot predict the entire effect of these developments since it is expected that fiscal measures will be enacted to resolve peru's financial problems however almost all ore sales are in u.s dollars and the devaluation itself does not affect these revenues marcona corporation's other principal subsidiary cia san juan s a 105,000 deadweight ton san juan exporter delivered to san juan carriers three new 128,000 deadweight ton combination ore-oil carriers to be delivered in 1969 and 1970 mt goldsworthy profitable in first full year of operation utah's share of pima's earnings increased 58 to 2,948,578 pima now processing 30,000 tons of ore per day provides both marketing and ocean shipping services for marcona mining company as well as for the mount goldsworthy iron ore project in western australia san juan carriers ltd a subsidiary of cia san juan s a operates a fleet of owned and chartered vessels having an annual lifting capacity in excess of 90 billion ton-miles in november 1967 a new ship of 106,000 deadweight tons the san juan exporter ranking as the world's largest specialized ore carrier was delivered to san juan carriers ltd in japan thereby expanding the capacity of the owned fleet to 560,637 deadweight tons san juan carriers ltd now owns 9 ships and has 16 others under long-term charter the shipping company was able to utilize the tanker capability of its combination ore-oil vessels in the oil trade following the closing of the suez canal in june as a result substantial earnings were realized the tanker market has now receded from the higher rates in effect during the summer of 1967 in 1967 marcona corporation announced that san juan carriers ltd had contracted for the construction of three new 128,000-ton combination ore-oil carriers the first two of these vessels will be delivered in 1969 the third in 1970 with the addition of these vessels the fleet will total 12 ships aggregating over 945,000 deadweight tons subsequent to the end of our fiscal year the american bureau of shipping authorized an increase in the draft of san juan's five ore-oil carriers the net effect of this was to increase the total deadweight tonnage of these vessels by 16,305 tons and will provide significant savings in ore transportation costs the mount goldsworthy iron ore project made a significant profit contribution in its first full year of operation as 2,958,000 tons of iron ore were delivered to japan plus an initial delivery to italy two increases in the backlog of sales from the mount goldsworthy iron ore project also occurred during the year in february cia san juan s a contracted with utah construction & mining co and the other participants in mount goldsworthy mining associates for the purchase of 3,125,000 tons of iron ore fines to be delivered to a consortium of japanese steel mills shipments of the fines have already commenced from port hedland in western australia and will continue over a period of six years with deliveries at the rate of 500,000 tons per year in august 1 967 an additional sale of 5 1 7,000 tons of iron ore to a japanese trading company was announced with deliveries to be made from 1967 to 1969 these two new sales are in addition to the 2.5 million tons per year of lump ore now being shipped under an earlier contract with japanese steel mills total sales from mt goldsworthy reserves now exceed three million tons on an annual basis through 1973 pima mining company engaged in copper mining and milling in arizona achieved record earnings for the sixth straight year utah's 25 % share of these earnings after distribution taxes amounted to 2,948,578 an increase of 58 over last year's record 1,865,000 during utah's fiscal year 86,909,000 pounds of copper concentrate were sold at an average price of 49.3 cents per pound even though there was a strike in most of the copper industry during several months of our fiscal year 1 967 pima successfully negotiated a new three-year contract with the unions representing its employees since pima started operations in 1957 there has been no loss of production because of work stoppages in november 1 967 the third pima expansion was completed increasing capacity from 1 8,000 tons per day to 30,000 tpd this expansion was performed for pima by utah's construction forces the company holds an interest in copper deposits on vancouver island british columbia widely spaced drill holes have given results which lend